What does Telangana RERA mean

What does Telangana RERA mean for Home-buyers in Hyderabad? Part 2

This is part II of the article, and explains how the Telangana Real Estate Regulation Act (RERA) is a boon and has REGULATED the Real Estate sector!

Please read part I of the article for better understanding.

You get an understanding of how ‘promoters’ (builders) as well as ‘agents’ are brought under the legal purview of the TS-RERA regulatory authority.

The result: PEACE OF MIND!!

The much needed deterrence mechanism to the real estate sector has brought transparent and trustworthiness to the Real Estate Industry.

With the Telangana RERA in place, the buyers, sellers as well as agents benefit. The industry grows on the foundation of trust, transparency and a well-regulated structure. Business flourishes when there is an environment of trust and safety all around.

Clearly, Telangana RERA enabling the real estate sector is truly a win-win for everyone!

1. Rules for Real Estate Agents (Brokers) regulated in Hyderabad / Telangana

Telangana rera| Rules for Real Estate Agents

  • Registration of agents or brokers is a must now
  • This prevents the ‘unregistered agents’ to deal with selling or buying of property
  • This way a registered Real Estate agent is made accountable
  • The unsocial elements who pose as brokers without any proper qualification and credentials are kept out
  • Registered broker means that the scope of DUPING innocent buyers is taken care of
  • No broker or an agent can sell or buy a property in Telangana without obtaining RERA registration
  • As a home buyer, you feel safer with this regulation
  • Registration means that the broker is answerable for their actions to the RERA authority
  • By default, a RERA registered broker is required to protect the interests of both the buyers and sellers
  • Safeguarding financial and legal interests is their prime duty
  • If anyone does Real Estate transactions without being registered, penalty is imposed on the ‘unregistered agent’ (UNAUTHORIZED)

2. Commercial and residential projects can begin marketing ONLY AFTER registering with RERA

  • A builder CANNOT advertise, book, or offer for sale any property without being RERA registered
  • Marketing without the project being registered is ILLEGAL!
  • With this, a builder cannot accept money from buyers just on a promise or fancy marketing materials!
  • A builder in Telangana is now under the RERA scanner
  • No violation is permitted as it can lead to the builder being JAILED
  • Promoters or builders who do NOT comply with RERA directives are now aware that it’s a punishable offense that can put them behind bars for up to 3 years!

3. What if the builder is not registered with RERA?

Telangana rera |

  • If a builder does NOT register under RERA, they can be penalised for up to 10% of the cost of the property
  • Besides registering, a builder is required to inform the RERA authorities of the status of the project at regular intervals (ONCE in three months)
  • With TS-RERA, a builder is made to fulfil their property related commitments, especially since they start taking money from buyers/investors as per a construction schedule
  • Deviation from the construction schedule is looked at very seriously by TS-RERA

4. Mandatory obligations of a builder as per TS-RERA

  1. A builder cannot take more than 10% as advance payment or application money without a proper agreement of sale
  2. Builders must get a Completion certificate (as called occupancy certificate) once the property is completed
  3. Deposit 70% of amount taken from buyer into a construction account. This money can be used only for construction purposes of the same residential or commercial property
  4. Builder cannot NOT use money taken for other purposes. No DIVERSION OF MONEY permitted
  5. Amount that a builder withdraws from this account should be same %age of completion
  6. Those involved in the construction must certify this viz. structural engineer, architect, a practising chartered accountant
  7. Thus, the professionals are also made answerable to follow a professional code of conduct in protecting buyers’ interests
  8. This ensures that misappropriation of funds is prevented
  9. Builder is kept under strict vigilance by the regulatory authorities
  10. Builders are required to compensate a buyer for any false statement
  11. A builder can be asked to give a Full refund with interest is required if promises are not kept
  12. Builder can be taken to task by RERA officials if the builder’s intent is found to be dubious
  13. Accounts of the builder need to be audited every financial year. Deviation or non-compliance can result in builders’ account being FROZEN by Telangana State RERA authority

Provision for home buyers to file complaints against builder

Consumers can file complaints about any registered project. There is provision to make an appeal before the appellate tribunal as well.

Further, one can even approach the high court.

Prior to 2017, such an organized mechanism did not exist where the builder would be brought under the scanner of a regulatory body backed by stringent rules and expectations.

Complete transparency with details of projects visible on the RERA website

Details of any project registered project in Hyderabad / Telangana are available online for citizens to verify on the Telangana RERA website.

Once can actually check whether or not a project is ‘registered’ by checking in the RERA website by typing the project title.

The process to check registered projects and agents:

Go to Telangana RERA website http://rera.telangana.gov.in/ Go to tab ‘SEARCH REGISTERED PROJECTS AND AGENTS’  and a separate website opens Entre name of project or agent name to verify

An external website opens up where you can check the ‘registered projects’ and ‘registered agents’. The complete details of the project, as well as the agent, are made visible. You can not only view the ‘application’, but also the ‘certificate’ issued by Telangana RERA authorities.

This is a fabulous facility. All the registered and authentic projects and agents are out there in the public view. The scope of fraud and getting duped goes down drastically.

One can see the following details on the website:

A. Sanctioned plans, layout plans, specifications, number of the building(s) or wing(s) in the project, schedule of completion, provisions for civic infrastructure like water, sanitation, and electricity, etc.

B. One can also view quarterly updates of the bookings done, covered parking/garages booked, approvals taken/pending after Commencement Certificate is issued, the status of the project, and much more…

The authority further mandates that any marketing effort like advertisements or prospectus etc. must carry the website address of the Telangana RERA authority clearly. All the marketing efforts also need to have the RERA registration number obtained from the Authority for the project being marketed. This helps the buyers – both home and commercial- to check and verify the claim of the builder on the website. Thus, preventing from being duped by unscrupulous elements.

Strict rules for builders that are home buyer-centric

The home and commercial buyers of properties in Hyderabad / Telangana are required to have complete information at their disposal and make an informed decision. Also, helps them avoid unregistered projects that are risky for the buyer.

The consumer-centric measures of Telangana RERA include:

1. No alterations or additions in plans can be made by the builder other than the sanctioned plans

2. If the builder fails to give timely possession (delivery), then the builder is liable to pay interest to the buyer on a monthly basis

3. If the buyer (allottees) want to withdraw from the project, they need to be refunded their money with interest

4. Builder / Promoter to ensure that within 2 months of occupancy certificate, with 60% of the project being handed over possession (after paying in full), the builder must facilitate formation of the ‘Association of Allottees’

5. Promoter / Builder to issue conveyance deed (registration of property in buyer’s name) within 3 months from date of occupancy, or when 60% of the allottees have taken possession having paid in full to the builder / promoter, whichever happens earlier


The key highlights of Telangana RERA for buyers of residential and commercial properties in Hyderabad / Telangana are:

i) promotion of transparent and smooth financial transactions between buyers and sellers of real estate properties

ii) project needs to be registered with Telangana RERA before construction without which marketing and selling are simply NOT allowed

iii) builders are held accountable for the money they take from buyers, and need to provide a timely updates of their projects

iv) a total of 70% of the amount taken from buyers to be safely set aside for the sole purpose of use in construction of the registered project

iv) a strong deterrence mechanism with penalties, and v) a customer centric redressal mechanism in place to keep up with the financial discipline of the builder/promoter.

With the Telangana RERA in place, the buyers, sellers as well as the agent benefit. The industry grows on the foundation of trust, transparency, and a well-regulated structure. Business flourishes when there is an environment of trust and safety all around.

Clearly, Telangana RERA enabling the real estate sector is truly a win-win for everyone!


To know more about “What does TS RERA mean for Home-buyers in Hyderabad? Part 1”. Click here!

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